Risk management refers to the identification, assessment, and prioritization of risks in business operations and products. This is followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities. There are two types of events: negative events can be classified as risks while positive events are classified as opportunities. Risks manifest in various forms and may be caused by uncertainty in related markets, threats from project failures, legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root-cause. Several risk management standards have been developed but fall short of a complete solution. Complying with these standards is time-consuming and even when compliance is made, the results were not meaningful.
It is with respect to these and other considerations that the present improvements have been desired.